Factors Associated with the Extent of Usage of Accounting Information by the Public Accounts Committee in Tanzania Public Corporations

Abstract

This study aims to examine expectations on content of accounting information and ability to interpret accounting information as associated factors on the extent of usage of accounting information in Tanzania public corporations. The usage of accounting information by politicians in the world context have led to mixed results.Further, the use of accounting information by Public Accounts Committee (PAC) in monitoring public corporations has not been consistent, hence calling for an examination on the practice to get insights explaining the extent of usage of accounting information. Data for the study were gathered using a survey instrument from Public accounts committee members and ex-members from 2005 to 2022. The study used Partial Least Square Structural Equation Modeling [PLS- SEM] to analyze data. Findings reported coefficient determination (R2) of 0.640 that explained a 64% variation in the extent of usage of accounting information as a dependent construct. The study found that expectations on content of accounting information and ability to interpret accounting information were positively and statistically significant as factors associated with the extent of usage of accounting information in Tanzania public corporations. Thus, the study strongly recommends to the Parliament, Regulators, practitioners, and other relevant stakeholders, to consider the findings of this study to enhance the extent of usage of accounting information. This can be done through crafting and implementing policy making for usefulness of accounting information driven by the Public Accounts Committee needs. Besides, the producers of accounting information must ensure accounting information possesses a quality, relevance, and appropriateness to influence the ability to interpret accounting information and meet expectations on content of accounting information, hence improving the extent of usage of accounting information in Tanzania public corporations.